Colorado drivers could see sub-$2 gas due to falling oil prices

The plunge in oil prices that is creating turmoil on Wall Street and concerns about the impact on one of Colorado’s major industries will mean lower-than-normal prices at the pump, possibly lower than $2 a gallon at some point.

“Historically, this is the time of the year when we see pump prices rise as demand increases and stocks decline. Not this time,” AAA Colorado spokesman Skyler McKinley said in a statement.

Oil prices tumbled nearly 25% Monday as the spread of the coronavirus continued to slow the economy worldwide and decrease demand for oil. The breakdown of an agreement between Russia, Saudi Arabia and other OPEC countries to cut production rattled the energy markets.

In response to Russia’s refusal to reduce output, Saudi Arabia said it would boost production. That means lower prices for producers, which is expected to have a ripple effect through the economy.

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One of the effects will be felt at the gas pump. McKinley said the savings might not show up immediately because it could take up to six weeks for the lower-priced crude oil to make its way through the system.

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